Nordecon AS 2015. Aasta Konsolideeritud Majandusaasta Aruanne
Total Page：16
File Type：pdf, Size：1020Kb
Group annual report 2016 Business name Nordecon AS Registry number 10099962 Address Pärnu mnt 158/1, 11317 Tallinn, Estonia Domicile Republic of Estonia Telephone +372 615 4400 E-mail [email protected] Corporate website www.nordecon.com Core business lines Construction of residential and non-residential buildings (EMTAK 4120) Construction of roads and motorways (EMTAK 4211) Road maintenance (EMTAK 4211) Construction of utility projects for fluids (EMTAK 4221) Construction of water projects (EMTAK 4291) Construction of other civil engineering projects (EMTAK 4299) Financial year 1 January 2016 – 31 December 2016 Council Toomas Luman (chairman of the council), Andri Hõbemägi, Vello Kahro, Sandor Liive, Meelis Milder Board Jaano Vink (chairman of the board), Avo Ambur, Erkki Suurorg Auditor KPMG Baltics OÜ Nordecon – Group annual report 2016 Contents Nordecon Group at a glance .................................................................................................................................. 4 Letter from chairman of the council ...................................................................................................................... 5 Group chief executive’s letter ............................................................................................................................... 6 Directors’ report ................................................................................................................................................... 8 Consolidated financial statements .......................................................................................................................47 Consolidated statement of financial position ......................................................................................................... 47 Consolidated statement of comprehensive income ............................................................................................... 48 Consolidated statement of cash flows.................................................................................................................... 49 Consolidated statement of changes in equity ........................................................................................................ 50 NOTE 1. General information about the Group ...................................................................................................... 51 NOTE 2. Statement of compliance and basis of preparation.................................................................................. 51 NOTE 3. Significant accounting policies .................................................................................................................. 54 NOTE 4. New standards, amendments and interpretations .................................................................................. 67 NOTE 5. Financial risk management ...................................................................................................................... 69 NOTE 6. Group entities .......................................................................................................................................... 76 NOTE 7. Changes in Group structure ..................................................................................................................... 77 NOTE 8. Cash and cash equivalents ....................................................................................................................... 77 NOTE 9. Trade and other receivables .................................................................................................................... 78 NOTE 10. Prepayments ........................................................................................................................................... 79 NOTE 11. Inventories .............................................................................................................................................. 79 NOTE 12. Investments in equity-accounted investees ........................................................................................... 80 NOTE 13. Investment property ............................................................................................................................... 83 NOTE 14. Property, plant and equipment .............................................................................................................. 84 NOTE 15. Intangible assets ..................................................................................................................................... 84 NOTE 16. Borrowings .............................................................................................................................................. 87 NOTE 17. Finance and operating leases ................................................................................................................. 88 NOTE 18. Trade payables ........................................................................................................................................ 89 NOTE 19. Other payables ........................................................................................................................................ 89 NOTE 20. Deferred income ..................................................................................................................................... 90 NOTE 21. Provisions ................................................................................................................................................ 90 NOTE 22. Equity ...................................................................................................................................................... 91 NOTE 23. Earnings per share .................................................................................................................................. 92 NOTE 24. Share-based payments ........................................................................................................................... 92 NOTE 25. Segment reporting .................................................................................................................................. 92 NOTE 26. Construction contracts in progress ......................................................................................................... 95 NOTE 27. Cost of sales ............................................................................................................................................ 95 2/119 Nordecon – Group annual report 2016 NOTE 28. Administrative expenses ......................................................................................................................... 95 NOTE 29. Other operating income and expenses ................................................................................................... 96 NOTE 30. Finance income and costs ....................................................................................................................... 96 NOTE 31. Income tax expense ................................................................................................................................ 96 NOTE 32. Financial instruments and financial risk management ........................................................................... 97 NOTE 33. Contingent liabilities ............................................................................................................................. 101 NOTE 34. Assets pledged as collateral .................................................................................................................. 101 NOTE 35. Transactions with related parties ......................................................................................................... 102 NOTE 36. Litigation and claims ............................................................................................................................. 103 NOTE 37. Events after the reporting period ......................................................................................................... 105 NOTE 38. Parent company’s primary financial statements .................................................................................. 106 Statements and signatures of the board and the council .................................................................................... 110 Independent auditors’ report ............................................................................................................................... 110 Profit allocation proposal ..................................................................................................................................... 112 3/119 Nordecon – Group annual report 2016 Nordecon Group at a glance Nordecon AS (previous names AS Eesti Ehitus and Nordecon International AS) began operating as a construction company in 1989. Since then, we have grown to become one of the leading construction groups in Estonia and a strong player in all segments of the construction market. For years, our business strategy has been underpinned by a consistent focus on general contracting and project management and a policy of maintaining a reasonable balance between building and infrastructure construction. We have gradually extended our offering with activities which support the core business such as road maintenance, concrete works and other services that provide added value, improve our operating efficiency and help manage risks. Nordecon’s specialists offer high-quality integrated